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Liquidity Pool
The initial Liquidity Pool will be funded by Virtually Made. A set amount of ADA will be locked into a liquidity pool which will be paired with 31,500,000 $Greens tokens. This liquidity pool will ensure that holders can exchange $Greens and ADA in real time through AMM platforms such as SundaeSwap.
AMMs (Automated market makers) are part of the DeFi (decentralized finance) ecosystem. AMMs allow digital assets to be traded in a permissionless and automatic way by using liquidity pools rather than the traditional market of buyers and sellers. AMM users will supply liquidity pools with tokens, value will be determined by a constant mathematical formula. Liquidity pools are an essential instrument in the DeFi ecosystem and can be optimized for multiple purposes.
A liquidity pool can be thought of as a pool of cryptocurrency assets locked within a smart contract which can be used for DeFI leveraging AMMs. In traditional finance (Centralized Finance or CeFi), liquidity is provided by a central organization, such as a bank or a stock exchange.
Last modified 1yr ago